Logo of Phnom Penh Post newspaper Phnom Penh Post - Huawei 5G troubles to test bandwidth of Nordic competitors

Huawei 5G troubles to test bandwidth of Nordic competitors

Content image - Phnom Penh Post
Ericsson and Nokia on Friday won contracts with one of Europe’s largest mobile operators, Orange France, to deploy 5G networks across the country. AFP

Huawei 5G troubles to test bandwidth of Nordic competitors

Tougher UK and EU rules restricting 5G network supplier Huawei should be a golden opportunity for competitors Nokia and Ericsson, but the companies may struggle to meet the increased demand, analysts warned.

On Tuesday, Britain imposed a 35 per cent cap on the role of “high-risk vendors” in building the country’s next-generation communications network, over security concerns.

The change will hit Chinese giant Huawei, whom critics accuse of being ultimately under the control of Beijing, an allegation it strongly denies.

The EU followed by releasing guidelines urging member states to avoid dependency on “high risk” suppliers, though the bloc stopped short of naming Huawei or calling for an outright ban.

On the face of it, the biggest beneficiaries from this week’s announcements appear to be the Chinese firm’s two largest competitors, Nokia and Ericsson.

“BT in the UK thinks it’s going to cost it £500 million [$660 million] to switch out Huawei, so a good chunk of that will now be going to Nokia and Ericsson,” analyst Matthew Howett of Assembly Research said.

On Friday, Nokia welcomed the EU’s guidelines and commitment to cybersecurity, saying in a statement that “5G starts and ends with trust and security.”

Ericsson greeted the “comprehensive approach” agreed by the EU countries. “Ericsson stands ready to support this process to ensure a high level of protection for European citizens and business”.

But industry watchers claim that fulfilling the increased demand left by market leader Huawei may not be straightforward.

Huawei is widely seen as providing the most advanced 5G for the super-fast data transfers, necessary for self-driving cars and remote-controlled robots in factories or operating theatres.

“A discussion needs to take place about Huawei’s perceived leadership position, and how ready Nokia and Ericsson are to step up to that over the next three year period,” Howett said.

“Can they give network operators the equipment they need in the timescale?”

Last year Nokia downgraded its 2020 earnings forecast in the face of fierce competition over the 5G networks market, while chief executive Rajeev Suri played down the firm’s delays in delivering some equipment orders.

Any difficulties in meeting demand will be felt by European consumers, said smartphone analyst Neil Mawston of Strategy Analytics.

“Restricting Huawei kit from the network potentially means the cost of 5G will be slightly higher and the rollout slightly slower,” Mawston said.


  • Ministry requests school opening

    The Ministry of Education, Youth and Sport on Thursday said it would request a decision from Prime Minister Hun Sen to allow a small number of schools to reopen next month. Ministry spokesman Ros Soveacha said if the request is granted, higher-standard schools will reopen

  • Kingdom eyes India FTA, China deal set for August

    Cambodia is studying the possibility of establishing a bilateral free trade agreement (FTA) with India to open a new market with the second-largest regional economy. This comes as an FTA with China is scheduled to be signed next month while similar negotiations with South Korea

  • Judge lands in court after crashing into alleged thief

    Sen Sok district police on Thursday sent a Koh Kong Provincial Court judge to the Phnom Penh Municipal Court on manslaughter charges after he crashed his car into a woman riding a motorbike on Wednesday, killing her. District police chief Hour Meng Vang told The

  • Gov’t to boost Siem Reap tourism

    The Ministry of Tourism released the results of an inter-ministerial committee meeting concerning Siem Reap province’s Tourism Development Master Plan for 2020-2035 on Wednesday, revealing the government’s plan to improve the overall tourist landscape there. The meeting was attended by Minister of Tourism

  • Residents ordered to remove structures on Phnom Penh’s canal

    Phnom Penh municipal governor Khuong Sreng has ordered authorities to act against the perpetrators who built houses along the Luo 5 canal in Meanchey district. The municipal administration plans to create a committee to solve the matter. The order was given on Wednesday while Sreng led

  • ‘On the offensive’: Cambodia to load up on loans to stimulate economy

    As the dust settles on the economy, Cambodia comes to grips with what needs to be done to turn the economy around, starting with a big shopping list for credit ‘We are going on the offensive,” Vongsey Vissoth, Ministry of Economy and Finance permanent secretary

  • Government set to make up for cancelled April holiday

    The government is set to make up for a five-day Khmer New Year holiday late this month or early next month. The holiday was earlier cancelled due to the onset of Covid-19. The announcement is expected on Friday as the government is studying a range

  • Families told to register for cash handouts

    The government has called on poor families to apply to commune authorities for evaluation to receive financial support during the Covid-19 crisis. A $300 million budget has been planned for implementation within a year. Ministry of Economy and Finance secretary of state Vongsey Visoth said this

  • Crumbling prices, rent ruffle condo segment

    The prolonged decline in international arrivals to Cambodia intensified by renewed Covid-19 fears has driven down condominium sales prices and rental rates in Phnom Penh, a research report said. CBRE Cambodia, the local affiliate of US commercial real estate services and investment firm CBRE Group

  • Over $3M in traffic fines collected in two months

    Traffic police officers collected over $3 million in fines throughout the Kingdom during the past two months when officers strictly enforced the law in accordance with a May sub-decree, officials said. As incentives, law enforcement officers received between 200,000 and two million riel ($50 to $500) each. The figures